The Credit Crunch: Who's To Blame?

PostThe Credit Crunch: Who's To Blame? by **Cal** » Wed Sep 17, 2008 9:38 am

This post is dedicated to Hexx, who insists his is the only view that counts when it comes to the so-called 'credit crunch', and maintains that any blame due, should not be directed at his beloved banking institutions... Read on, Hexx, and remember these are the thoughts of some leading financial experts...

Credit crunch: The blame game

We asked various experts to tell us who they thought was responsible - and their answers make interesting reading.

Professor Peter Morici of the University of Maryland has been an adviser to the US Congress and government.
...They [the banks] bought each other's debt and erased one another's risk by dealing with one another in a giant chain letter. Until someone realised that what they were trading wasn't worth a hill of beans. ...Who are the fools here? Perhaps you and me. The engineers have turned worthless paper into personal fortunes by sticking us with the tab.

Robert Reich, of the University of California at Berkeley, is a former US labour secretary.
Some greed is necessary to keep capitalism going. But too much greed will bring it down. Greedy bankers like them have been running a giant con-game. They figure if they can persuade investors to buy something that's actually worth nothing, it might appear to be worth something, which lets them persuade others to buy even more, because - after all - by this time lots of investors are buying it. And then when the bubble bursts and investors lose their shirts, the bankers keep their fat commissions and a percentage of the upside gains.

William Fleckenstein is the author of Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve. He also manages a hedge fund based in Seattle.
...Deregulation was thought to be the solution to any and all imbalances, as the market would find any weak institutions and punish them for bad decisions before the whole system became rotten. Unfortunately, the very institution that had the regulatory authority to supervise the banking system was the one leading the cheerleading - namely, the Fed... In the end, it was sort of like putting the bartender in charge of the breathalyser.

Norma Garcia is senior attorney with the Consumers' Union in the US.
...But there are many realtors [Estate Agents] who were so zealous to get potential home-buyers into homes and earn their commission that they were more concerned about closing the deal than making sure their customers could afford the payments down the line. ...Realtors ought to be giving their clients advice they can take to the bank, rather than to the poorhouse.

Full Story: http://news.bbc.co.uk/1/hi/business/7525724.stm

PostRe: The Credit Crunch: Who's To Blame? by JV » Wed Sep 17, 2008 9:38 am

AndyXL.

I haven't lost any money to anyone except Shell and BP.

I partly blame the media. It has helped create a self fulfilling prophecy of financial disaster with its constant negative news over the past two years. They seem able to find a negative in any story and just talk about that. Yep, its all News 24's fault

.

7256930752

My extremely limited knowledge on the subject tells me it was the banks fault for lending large sums of money to people who had no hope of paying it back.

Last edited by Hexx on Wed Sep 17, 2008 10:07 am, edited 2 times in total.

Cal wrote:This post is dedicated to Hexx, who insists his is the only view that counts when it comes to the so-called 'credit crunch', and maintains that any blame due, should not be directed at his beloved banking institutions... Read on, Hexx, and remember these are the thoughts of some leading financial experts...

Um. No. Did you read the thread?. Have you made a new one to try and avoid the large majority of people questioning/correcting you? Skarjo, PeterCrisp, Bigrerich, Midtown all spring to mind as having different and informed opinions...all disagreeing with you, and asking you questions you couldn't answer...

There was lots of good thoughts/impressions thoughts and discussions, and several wonderful PM exchanges (hey guys!). Yours, unfortunately, isn't one of them.

Yours was the only view on the "credit crunch" - which at one point you got so confused and said didn't exist remember - and the "criminal and totally to blame bankers" that I, and others, called up as misunderstanding/misdirected.

And "should not be directed at". Again. No. Wonderful selective memory. I, and others. did say it wasn't an "either/or" between banks/customers, but that it can quite easily be a combination several groups fault (including a combination of regulators, governments, banks and borrowers etc)

As I, and again others, pointed out this out to you while you were trying to pin everything on greedy bankers, and absolving "the public" of any wrong doing/fault.

And you never did answer my question - haven't you been bankrupt before?

You've missed several points in your selective quoting to try and validating your "parrot with tourettes" style of argument...

But there's no point going through it. You wont listen, you wont learn, and you wont try and understand...after all you already do "understand", don't you. As you so wonderfully (or is that woefully?) demonstrate with each post.

I made a spreadsheet showing all of our money in and all of our bills and expenses and discovered that I have more expendable income now (or at least at the end of the month) than I've had at any other time in my life.

strawberry float YOU CREDIT CRUNCH, I SPIT IN YOUR EYE!

Shadow wrote:I made a spreadsheet showing all of our money in and all of our bills and expenses and discovered that I have more expendable income now (or at least at the end of the month) than I've had at any other time in my life.

strawberry float YOU CREDIT CRUNCH, I SPIT IN YOUR EYE!

If you're shoing your incomes/outcomes, why would the credit crunch affect you? You aren't borrowing

Shadow wrote:I made a spreadsheet showing all of our money in and all of our bills and expenses and discovered that I have more expendable income now (or at least at the end of the month) than I've had at any other time in my life.

strawberry float YOU CREDIT CRUNCH, I SPIT IN YOUR EYE!

Ours is still in the green (just) I get paid next thrusday and have 12 pounds in my bank. It is ridiculous, Im worried to put the fire on just in case I cant pay for it.

JV wrote:AndyXL.

You're a very funny man.

Hexx wrote:
Shadow wrote:I made a spreadsheet showing all of our money in and all of our bills and expenses and discovered that I have more expendable income now (or at least at the end of the month) than I've had at any other time in my life.

strawberry float YOU CREDIT CRUNCH, I SPIT IN YOUR EYE!

If you're shoing your incomes/outcomes, why would the credit crunch affect you? You aren't borrowing

I know, but I'm using the phrase "Credit Crunch" in the same way as the media, as a catch-all term for everything finance related.

Shadow wrote:I know, but I'm using the phrase "Credit Crunch" in the same way as the media, as a catch-all term for everything finance related.

I hate you.

I really really really really really really really hate you

glowy69 wrote:
Shadow wrote:I made a spreadsheet showing all of our money in and all of our bills and expenses and discovered that I have more expendable income now (or at least at the end of the month) than I've had at any other time in my life.

strawberry float YOU CREDIT CRUNCH, I SPIT IN YOUR EYE!

Ours is still in the green (just) I get paid next thrusday and have 12 pounds in my bank. It is ridiculous, Im worried to put the fire on just in case I cant pay for it.

£12! Jesus Christ! That's poverty!

We try to stop spending when we have less than £400 in the bank, what if you had to buy something? What if you got a puncture?

Shadow wrote:
glowy69 wrote:
Shadow wrote:I made a spreadsheet showing all of our money in and all of our bills and expenses and discovered that I have more expendable income now (or at least at the end of the month) than I've had at any other time in my life.

strawberry float YOU CREDIT CRUNCH, I SPIT IN YOUR EYE!

Ours is still in the green (just) I get paid next thrusday and have 12 pounds in my bank. It is ridiculous, Im worried to put the fire on just in case I cant pay for it.

£12! Jesus Christ! That's poverty!

We try to stop spending when we have less than £400 in the bank, what if you had to buy something? What if you got a puncture?

I'm gonna take a horrid guess - Credit Card?

Hexx wrote:
Shadow wrote:I know, but I'm using the phrase "Credit Crunch" in the same way as the media, as a catch-all term for everything finance related.

I hate you.

I really really really really really really really hate you

I actually did it on purpose, I remembered Steve's 'Wankers!' thread on the subject and thought it'd be a good opportunity to get people's knickers in a twist.

Hexx wrote:
Shadow wrote:
glowy69 wrote:
Shadow wrote:I made a spreadsheet showing all of our money in and all of our bills and expenses and discovered that I have more expendable income now (or at least at the end of the month) than I've had at any other time in my life.

strawberry float YOU CREDIT CRUNCH, I SPIT IN YOUR EYE!

Ours is still in the green (just) I get paid next thrusday and have 12 pounds in my bank. It is ridiculous, Im worried to put the fire on just in case I cant pay for it.

£12! Jesus Christ! That's poverty!

We try to stop spending when we have less than £400 in the bank, what if you had to buy something? What if you got a puncture?

I'm gonna take a horrid guess - Credit Card?

Well, a Credit Card's not exactly a horrid option if he gets paid next week.

Shadow wrote:
Hexx wrote:
Shadow wrote:I know, but I'm using the phrase "Credit Crunch" in the same way as the media, as a catch-all term for everything finance related.

I hate you.

I really really really really really really really hate you

I actually did it on purpose, I remembered Steve's 'Wankers!' thread on the subject and thought it'd be a good opportunity to get people's knickers in a twist.

Oh my boxers are in a Prusik knot.

Shadow wrote:
Hexx wrote:
Shadow wrote:
glowy69 wrote:
Shadow wrote:I made a spreadsheet showing all of our money in and all of our bills and expenses and discovered that I have more expendable income now (or at least at the end of the month) than I've had at any other time in my life.

strawberry float YOU CREDIT CRUNCH, I SPIT IN YOUR EYE!

Ours is still in the green (just) I get paid next thrusday and have 12 pounds in my bank. It is ridiculous, Im worried to put the fire on just in case I cant pay for it.

£12! Jesus Christ! That's poverty!

We try to stop spending when we have less than £400 in the bank, what if you had to buy something? What if you got a puncture?

I'm gonna take a horrid guess - Credit Card?

Well, a Credit Card's not exactly a horrid option if he gets paid next week.

Yeah, but it can (sometimes! Not commenting on glowy specifically) lead to an ever downward spiral, and massive problems if when interest/rates rise.

(And I still hate you. I don't like being in a quote chain with you without mentioning it

)

Hexx wrote:
Shadow wrote:
glowy69 wrote:
Shadow wrote:I made a spreadsheet showing all of our money in and all of our bills and expenses and discovered that I have more expendable income now (or at least at the end of the month) than I've had at any other time in my life.

strawberry float YOU CREDIT CRUNCH, I SPIT IN YOUR EYE!

Ours is still in the green (just) I get paid next thrusday and have 12 pounds in my bank. It is ridiculous, Im worried to put the fire on just in case I cant pay for it.

£12! Jesus Christ! That's poverty!

We try to stop spending when we have less than £400 in the bank, what if you had to buy something? What if you got a puncture?

I'm gonna take a horrid guess - Credit Card?

At the mo, we are still buyiing stuff for the new house so its tough, apparently we have a tax rebate this month so its not too bad, plus the 12 pound left is after we have bought everything and paid everything for the month. I dont have a credit card anymore, I cant be trusted and Im not allowed but the GF has one as that what we use it for.

Hexx wrote:
Shadow wrote:
Hexx wrote:
Shadow wrote:
glowy69 wrote:
Shadow wrote:I made a spreadsheet showing all of our money in and all of our bills and expenses and discovered that I have more expendable income now (or at least at the end of the month) than I've had at any other time in my life.

strawberry float YOU CREDIT CRUNCH, I SPIT IN YOUR EYE!

Ours is still in the green (just) I get paid next thrusday and have 12 pounds in my bank. It is ridiculous, Im worried to put the fire on just in case I cant pay for it.

£12! Jesus Christ! That's poverty!

We try to stop spending when we have less than £400 in the bank, what if you had to buy something? What if you got a puncture?

I'm gonna take a horrid guess - Credit Card?

Well, a Credit Card's not exactly a horrid option if he gets paid next week.

Yeah, but it can (sometimes! Not commenting on glowy specifically) lead to an ever downward spiral, and massive problems if when interest/rates rise.

(And I still hate you. I don't like being in a quote chain with you without mentioning it )

Downward spiral? Have you not followed what I went through about 18 months ago, I went through said spiral and dropped out of the bottom and kept going.

The Credit Crunch: Who's To Blame?

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